CDNA Signals SELL On 2 Hour Chart

The Technical Analysis

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Published: August 25, 2021 at 08:21 PM EDT

On August 25, 2021, CareDx Inc stock (CDNA) achieved a SELL signal on 1 of our proprietary algorithms indicating near-term downward movement for CDNA. Based on historically similar occurrences, the likelihood of this near-term movement is very high. Although this analysis may be technical, it clearly lays out targets for pending price action for CDNA. The chart of all potential movement is at the bottom of this article.

Relative Strength Index 3x Extrema

This algorithm follows the common Relative Strength Index with a shorter length. It signals when extreme overbought and oversold conditions occur. This particular algorithm signals rarely but maintains one of the best accuracy levels of all my algorithms.

Relative Strength Index 3x Extrema SELL - CDNA 2 Hour Chart Accuracy

This algorithm accurately identifies SELL points for CDNA on 2 hour charts 100.0% of the time it signals. A successful signal means the equity price moves down at least 0.5% over the next 40 2 Hour bars. When the algorithm properly performs, success is seen at least 1 trading bars after the signal closing price with a median max gain occurring around 25 trading bars after the signal bar. Successful signals see average reversals of 11.1% from the signal bar closing price and median reversals of 10.0%. The equity reverses greater than two percent 92.593% of the time, greater than five percent 66.667% of the time, and moves beyond ten percent 48.148% of occurrences. The signal does not necessarily mean an immediate price reversal will occur. Price reversal is delayed 100.0% of the time. In these instances, the reversals do not obey the signal and begin sizable downward movement for an additional 1 to 5 bars after the triggering signal occurs. This delay can see the equity rise 2.102% to 6.796% beyond the signal closing price of 78.47.

Analysis Based on This Section

Based on the signal closing price of 78.47, the target price is between 66.15 and 75.42 over the next 10 to 31 bars after the signal. However, the equity may first rise toward a price in the range of 80.12 to 83.8 over the first 1 to 5 trading bars.

Summarization of Data

Based on all of the historical datapoints, this analysis has settled on the most likely courses of movement. The red boxes in the image below indicate the likely location of a rise if the signal is not immediately accurate. The green boxes likely hold the extent of signal accuracy. The larger boxes contain all movements aligned with historical data. The smaller box is comprised of the likely half of the median historical data. In this instance, half of the historical data shows the stock may first move up between 80.12 and 83.8. This is the small red box. Likewise, half of the historical target end points finish in the smaller green box. In this instance, the target bottom is likely between 66.15 and 75.42.

Chart displaying Reversals and Targets for CDNA

View this interactive chart on TradingView to see where the stock currently is for this idea.

DISCLOSURE: The algorithms and historical accuracy percentages mentioned in these articles are for reference only. Anything can happen in the future when it comes to market movement. Historical price action is not always indicative of future movement. Just because the signals may have a high degree of accuracy, they can always fail. Traders assume all risk to their assets when investing in short or long-term opportunities.

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